USD/JPY could slip back to 110.50/110.00 near term – Commerzbank

The Japanese currency could appreciate to the 110.50/110.00 band vs. the greenback in the near term, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/JPY is probing the base of its cloud at 111.82, which is currently holding and may provoke some minor slippage into the 110.50-110.00 band near term. We target the 112.13 24th May high. Rallies will need to regain 112.13 to retarget the 114.38 recent high. Dips should find initial support offered by the 200 day ma at 110.82”.

“Nearby support is the 250 day ma at 109.20 and 55 week ma at 108.85, below here, there is scope for slippage to the 108.13 April low”.